Ratio analysis 1: profitability, ef ficiency, and performance
. Start Up plc has produced its first set of financial results. Ordinary shares in the company were issued at the start of the financial year at a price of £2.00 each. The par value of each ordinary share in Start Up was 10 pence. 50 million shares were issued by the company and the first year's profit for the year is £15m. The current market price of the shares is £2.70. What is the price/earnings ratio of Start Up plc?

. At 28 February 2022, Megabucks plc has an issued share capital of £25m, made up of ordinary shares of 50 pence each. Profit for the year to 28 February 2022 amounted to £20 million. Dividends for the year were 16 pence per share. The current market price of shares in Megabucks plc is 520 pence. What is the price/earnings ratio of Megabucks plc?

. Chunky plc has issued share capital of 45 million ordinary shares of 25 pence each and 10 million 6% preference shares of £1 each. Profit for the year to 31 March 2022 amounted to £30 million. Ordinary dividends for the year were 20 pence per ordinary share. The current market price of shares in Chunky plc is 750 pence. What is the price/earnings ratio of Chunky plc?